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tv   Power Lunch  CNBC  February 25, 2013 1:00pm-2:00pm EST

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♪ you voted and said simon baker. >> the british accent. that's what it is. >> at least it's not the hair style. >> i don't argue with people with british accents as a rule. i think most people agree. >> oracle, i like it. >> joe? >> igt, off the casino comments. >> josh brown. >> don't sleep on this thing. >> a good trade, 8% up. >> have a great day. interesting, three hours until the market closes.
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see you tomorrow. >> and scott teed it up perfectly for us. a fascinate is hour here on the east coast. it is still election day in italy. now fearing gridlock, coming to rome, forcing a drop in the italian market. there you see the little slide, not so little, at the italian market. it sort of trickled over into the u.s. markets. as we countdown to march 1st deadline day for massive spending cuts out of washington. the dow was less than a hundred point from an all-time high but these two issues have now set the bulls back in the u.s. in the past two hours. the industrials now down about 12 point. josh h john harwood is in washington for us. we start with michelle caruso-cabrera in rome. >> tyler, the italian election is not turning out as market participants had hoped. they expected at this point we
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would have conclusive results out of the i tal yn election. we do not have conclusive results at this point and it is possible that italians may have to vote again for a new prime minister if we don't get an answer in this round. here's what the markets thought would happen. they thought a guy named louigi berosoni, who most americans haven't heard of, would win. and that silvio burr burr le /*y scony would come in 1ekd. he may not have any seats in the government. the mario monti part is crucial because he was supposed to team up with the first guy, louigi, to form a government.
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that is not the plan, that not happening. what happened in the next 24 hours is impossible to know. what is truly i amazing about this is silvio, many thought he would never come back, this is the guy with numerous sex scandals, tax evasion, he's been convicted four times. he wants to be in power partly so that he doesn't have to go to prison. take a look at what happened when he tried to vote yesterday or when he did vote yesterday. a group of women, the minute he walked into the polling station, began protesting by ripping off their tops. they had painted on their breasts, bear breasts and bare backs, bosta silvio and were screaming, enough of berlusconi is what they were saying. they were tackled by police, taken outside. berlusconi looked at them and said, relax, life isn't that tough. we saw the italian market pull
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dramatically. way off of its highs. we will see, sue, if we get any clarity by tomorrow morning. >> the markets would certainly like to see that, unbelievable michelle, thank you so much. . let's take a look, as michelle mentioned, stocks swinging quite wildly today. right now dow jones off at 13,984 ppt 36. the market's bell weather is trading down about a tenth after point at 1513 and change. nasdaq is up 4 and volatility index, fear index is up 6.5%. gold market rebounding from recent falls. right now, gold is up. down 9% in the lot of three months, though. silver, platinum, palladium, copper, also bouncing back from last week's sell-off as you can see. mary thompson is on the floor to describe what is going on. michelle handicapped it for us. >> this is trading italian
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style. this is what we call on monday. it looked promising. future is up. in fact du jones industrial average hit its highest level since october 2007. but then you have headlines crossing about berlusconi taking a lead within the italian senate. and that causes the sell-off. not only the dow but sa&p 500 a well. we saw the impact most notably into the dollar. and excuse me -- there's the dollar right there. i got ahead of myself. but treasuries also impacted. keep in mind that italy has one of the largest bond market in the world. so there are can concerns about how this disrupts payment and the physical progress they have made. as a result, you saw fly back into treasuries. yield on ten-year hit 10% and then pulled back from there. we saw the reaction from the italian markets and saw a continued rotation into markets. as investors seek an option from
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the treasury market because of concern about a bubble in the bond market. we've seen continued strength over the last ten days on a relative basis into utilities and telecoms and consumer staples as well. they hit an all-time high earlier today. paying a nice dividend so investors have been putting money into those as well. >> thank you very much. appreciate it. see you later as well. >> auction day in chicago. and we have two-year notes going off the board. how about we do, ricky? >> this is a surprisingly weak start to the auction process. 99 billion in total. 35 billion two-year note, yield, 2.57. that's right around where the wi market was. 26 bid, offered 25 1/2. no problem there. if we look at indirect, 22%, a little light versus 28 ten auction average. so why was it disappointing? i'll tell you why.
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because the bid to cover was 3.33, ten-auction average 3.83. weakest bid to cover in 19 months going back to july 11. that makes this one a hook. and average grade for the first of 99 billion supplies. sue, back to you. >> surprising given what is going on in europe. thanks, rick, very much. let's bring in director with o'neill securities. and joining us, from cko financial, kenny, we start with you, when michelle was handicapping everything this morning, it is unbelievable. our market is down 23 points. >> yes. and it is unbelievable the italians would re-elect silvio berlusconi aefr everything they've been through. there was a euphoria that maybe there t would be between monti and bersoni. now the.
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>> does that mean the european market are more important than the domestic situation or not? >> i think for today, certainly european markets are more important because the sense is what will happen in italy and is he rolling back the measures that mario monti put in place. i think there will be unsettling today because of that. we will see what happens tonight, if we get an answer. then tomorrow, the focus will go back as we get closer to friday, the focus is all about us and sequester and all that. but i got to tell you, i think the market is pushing to the side. >> would you agree with that? they are not panicking oversee quester. it doesn't seem like there's that fear that was there before. >> well, you're right. and kenny is right. there's not that fear yet, sue. though we are seeing us near multiyear highs and striking distance of double digits. there is fear representing the long end of the curve in the treasury. we saw them bid the treasury.
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one that berlusconi brom bomb was dropped. and as chef knows, when things are overcooked, good things can't happen. so we will see some skiddish traders in the pits behind me. really looking at washington, looking at berlusconi, a lot going on. this is a big, big week, sue. >> okay, so i was going to ask you how you would trade it. but you are saying take profits, get prepared. you are taking money off the table right now? >> we certainly are. we are putting out more and more protection via vix right now. we have protection for the client, due to the fact we have something out of italy. that is a curveball. we saw that type of drop. we saw the drop in the s&p, that could be the icing on the take this week. >> i think we will good 1490 i think is what we will test. so we are in this 1490, 1525ish range and we will be there until that there is that much more
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clarity. >> thank you very much. ty, up to you. >> another story that jittery investors are watching, down in washington. they just referenced it moments ago. it is especially true, a new york times article saying republicans would hit steep cuts hitting the pentagon. here is how the defense sector is fairing right now. shall we take a look if we don't have that, we will bring it to you when we do. john harwood, live in washington. hi, john. >> there is no more clarity around this budget sequester situation than there is about the italian elections that michelle was talking about earlier. you've got many republicans as well as democrats saying, either publicly or privately, oh, it's not that bad. if you're a democrat will it cut defense. some say okay, it'll cut spending overall. that's fine too. you have president obama with public pressure trying to convince the american people that bad things are going to happen and put pressure on republicans.
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he also sent senate remarks in the morning to the white house a way out for both sides. >> democrats, like me, need to acknowledge that we're going to have to make modest reforms in medicare if we want the program there for future generations and if we hope to maintain our ability to invest in critical things like education, research and infrastructure. but we also need republicans to adopt the same approach to tax reform that speaker boehner championed just two months ago. >> what he is talking about there is the so-called grand bargain we've been looking at and hoping for. for the last two years. but anybody who bet on that happening would long since have gone broke. we are going to have to see whether or not the reaction to the budget sequester and effects on constituents whether it is air travel delay or natural parks or furlough of defense workers would put enough pressure on members of congress to come to the table and make an agreement where both side get ground.
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tyler. >> thank you very much. meantime, japanese air carrier ana cancelled another 1700 flights between march 31 and may 31 because of the grounding of the boeing 787 dreamliner. boeing shares lower on that news today. those shares have taken a hit in recent weeks because of the ongoing battery problems plaguing and grounding that aircraft. 7571 the price for bowing right now. down about 2.5% today. since a fire on a parked dreamliner at boston's logan airport on january 7th began this cascade of troubles for boeing and the 787. monday is a big day for analyst calls on wall street. let's analyze the analystes with jeff killburg and we welcome back from out in chicago. jeff, good to see you. let's talk about moving capital 1 from from the stiffle list. and disappointing fourth quarter
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results and last year with a diluted divestiture, that's what they say. let's look at shares year to date, down 10% and stifel put it in double. >> i agree with this. being proactive, for the analyst community, and jumping off the page in their note, tyler, is that they presented a graph with consumer con if consumer confidence linked to their growth. and there is bifurcation with good earnings. right now, expected volatility. i think you will pull back and they pull it off the list for now. >> yeah. basically flat stanley for the last couple of years, capital one. more than anything, we like ox dent yl as a free cash flow story. shares have seen a nice run up in the past three months but over six months they are off by
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about four and a fifth percent. do you like this upgrade? >> no doubt about it, they are very insulated to the fl fluctuations in oil price. and they actually stated in their note, even if brent, not crude, even if brent goes down to $89, significant drop, there is still cash flow positive here. if you want to be in oil, this is one of the companies, specific company, to be in. i want to wait for a pull back. i think is too much too quick. >> upgrading to buy from neutral increasing price target to 130 bucks on quote improved visibility into eps growth. take a look at shares over the past month. already up by 12.25%, jeff? >> i like this upgrade. if you look at the flu season, a nice boost. think about it, ty, this is a big generic drug company. how do they compete, expand
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margins in 2013 and 2014? by accumulating companies. they are picking up a lot of small companies. they just picked up a company, about $3 million over the uk. so they are doing right things. i like this upgrade. i'm on board. two out of three, ty. >> thanks very much. sue, welcome back from your week off. good to see you. >> good to see pup thanks so much. coming up, as we continue, one of the most dramatic star-studded corporate trials, perhaps ever. today, macy's ceo terry lundgren in the battle with jc penney over martha stewart. and what happens in vegas may be keeping visitors from vegas. we are talking about a terrible farm wave on the strip and the impact it is having on tourism. check out zynga shares today. up 11%. one of the day's biggest winners. we will tell you why when we come back. for the rx and lexus.
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lunch." i'm josh lipton. check out the out the pop on the descent volume. the company's ceo will present at morgan stanley tech media in san francisco, scheduled to present right about now, a live webcast and replay will be available, the company says, on its website. sue, back to you. >> thank you very much, josh. macy's ceo terry lundgren
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taking the stand against rival jc penney in its rivalry over martha stewart. cross-examination is set to start this afternoon. lundgren arguing they have the exclusive right to sell martha stewart product and a deal with jc penney is conflict of interest. martha stewart signed a deal with jc penney to open martha stewart mini stores this year. yc penny is off 1.5%. ty? >> surging 7% after the car rental company's fourth quarter earnings beat analyst expectations. hertz forecasting earnings for 2013 because they figure they will raise prices. stock is up 52% since announcingity dollar thrifty acquisition last august.
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barnes & noble also way up today as you will see in a moment. there you see it, up 1.54. chairman rizzo says he want to buy the company's retail business but not the nook. the book company has been selling recent years as companies switch to digital books. barnes & noble shares launched 2% since it launched the book e-reader. amazon and maker of the kindle is up 388%. sue? >> wow. that's quite a move. let's look at shares of microsoft. they are moving slightly to the down side. they are off one penny at 27.75. stifel nicolaus believe they should be split up into two areas. john ford john fortt is in california for us. what are the chances of this happening, john? >> i don't think the chances of this happening is very good.
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in my conversationes with microsoft over the last few months, it is something that i keep bringing up, particularly because office, which is the real profit center in microsoft's business, not cell phones, not xbox, not even windows that much at this point, it is office in the business division. they don't have a version of ofgs for ios or android. that's one thing that stifel points out, advertising that microsoft is lead leaving about $2 billion on the table. microsoft's explanation is, hey, look, we are trying to drive the windows mobile strategy. but they are hoping people buy windows phone. it works better with office than other devices do. thus far, we haven't seen that working. does microsoft switch their position, tactics, if that proves not to bear out? >> john fortt, thank you very much. a civil suit against bp
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starts today. a lawyer for for the plaintiff says bp should be held responsible because they were more focused on cost-cutting than on safety measures. most observers expect the case to be settled before a verdict is reached. potential liabilities here could stretch into the tens of billions of dollars. bp shares up for than 2% since the spill in april of 2010. they currently trade lower on the day, down 97 cents at $40.86. because of new restrictions and lawsuits in the u.s., tobacco companies have been looking abroad for new blood and new money. but they may have just hit a big wall in russia. see what vladimir putin is doing to stomp out the tobacco company's profits. and something to worry about beyond losing money in vegas. jane wells is on that frightening case. jane? >> hey, tyler. even when you're nickname is sin city, murder can be bad for
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smoking will be banned in work area webs subways, cafes. estimated 40% of russian adults smoke. let's look at big tobacco stocks and how they are doing today. mixed picture there. two of them higher. three of them lower. sue? >> ty, las vegas has been hit with a wave of violent crime in recent months. five incidents alone near some of the strip's most famous and very upscale hotels. will it be enough to scare tourists away? jane wells is live in los angeles with perspective on that. hi, jane. >> hi, sue. a woman was killed by a drunk driver just west of the strip this afternoon. a business woman was going to the airport. and the shooting with a is the most high profile but it followed a stabbing at mandalay bay. there was a black jack dealer
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with razor blades in her hands. sin city says crime fell 13% this last year and is down another 11% this year. a spokesman for caesar entertainment tells us the company has seen no impact yet but is also telling the ap we are concerned because it can create misperceptions about the safety of the city. by the way, caesar way up ahead of earnings. as las vegas is recovering, in 2012, getting back close to 40 million visitors. the number of conventions and meetings up nearly 14%. clark county commissioners are considering cameras. there is a heavy presence in visible and visible. on twitter people are telling me, just got back friday, had a great week. didn't in the much different in the vibe, to be honest. another, i just got back friday
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and i would go again. i would go tomorrow, no problem. ibm will have 6,000 people there and the international conference of funeral service examining boards meeting. back to you. >> i went last fall, as you maybe remember, jane, o to the national funeral director's. it is wild. now planning 42-acre bay view campus. more than a million square feet in all. meanwhile, over in cooper tie o cupertino, apple will build a campus nearly 3 million square feet. there is the artist design, resembling a space ship. look at that. looks like stone hinge, sort of. not to be outdone, facebook is expanding head quarters in menlo park.
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expected to hold 3400 employees. gary who designed the gug guggenheim museum. now, americanes have more ded on their credit cart than savings in the bank. in florida, the doctor shortage is about to reach epic proportions and end of the road for tell commute. more power to new two minutes.
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gold prices look like we are settle at 1580 per ounce. gold bounced off of last week's seven-month low and we are continuing to watch the bounce here as we watch what is happening in terms of central banks around the globe. the fact that many investors are anticipating more quantitative easing or monetary easing from
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england, baunk of japan and fro the fed. we are looking at higher gold prices. and there is short covering after we saw money managers cut bullish bets for the second week in a row last week and we saw significant outflowes from gold etfs. what do they want instead? investors want palladium etfs. that where we have seen inflows and they are at record high levels. back to you. >> thanks sharon, very much. mary thompson rejoins me on the floor of the new york stock exchange. we deepened losses now down about 50 points or so. >> that's right. not close to lows. we are still right off the lows of the days, actually. but again, the story today is the italian elections because that disrupted markets today. dow jones at a five-year or more than that high. highest level since october 2007. monday blues continue on wall street. want to report the s&p for another down monday. down every monday so far this year.
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we get a lot of housing data this week. pricing data, all of the stocks lower ahead of this. also building material stocks weaker as well, ahead of all of the report coming up this week. one way it play the housing market, if you still think there is room it move, according to the mortgage insurer which continuesity nice upward move in today's session. one stock moving higher, barns and mobile chairman saying would he like to buy the retail parts of barnes & noble minus the nook. >> mary, stay with us. today's drop notwithstanding, stocks have been threatening new highs recently and that's partly because they are getting support from the feds quantitative easing program. some say they are getting a lot of support. how long will that last though? steve liesman is live with us with a look at that. hi, steve. >> looks like the fed is at it again.
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an easing program but with various members expressing concern which could undermine its effectiveness. the latest round of some fed officials suggestion will cost of open-ended qe could be greater than the benefits it would provide. this comes after the fed in september began, including this policy in its statement. quote, if the outlook for the labor market does not improve substantially, the continue will continue its purchases until such improvement will achieve. now the fed said all along it would take account the purchases. but some fed members appear now to trump the economic gels or concern opt street is that fed can end qe before it sees substantial improvement in the labor market and that total purchases could can come in below what is expected. vince reinhardt and morgan stanley write the knee jerk of the markets and participants could move and pull back in qe could kul back the date for the onset of tightening. that's the whole purpose of the statement in september so
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convince the market that fed would maintainity policy even amid improving jobs. bringing forward future gains. now the question is whether fed chairman ben bernanke uses the testimony to put the policy back on track. sue? >> yes, steve, stay with us. mary, what about that. what is the market expecting from bernanke tomorrow? and what about mr. reinhardt's comment. seems like we have been climbing that ladder based on the fact that the feds will be there. >> that the reason we have seen this very long run on it. i want to pose this question to steve. what they are saying is what they like it hear from bernanke is some better sense of the timeframe of when qe will end. but it will be toward the end of 2014 or the beginning? which one is it, steve? what should we be listening for tomorrow in the testimony to try to get a sense of that? >> what we know from cnbc fed surveys, the market expectation is for a trillion dollars this year and as you suggest, the end
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of this year or beginning of 2014. i think it is fair to say that first $500 bill yob of purchases by the fed you can put sort of in the safe category. that means it will continue on through june, maybe july. but i think after that is where the question comes in. mary, that last quarter trillion or half trillion of purchase says probably what is more up in the air after the infighting has become obvious to traders. >> so how is the -- is the market setting up as part of this move towards the down side setting up or putting in some safety perhaps ahead of the humphrey hawkins address tomorrow? >> that, actually that's a good point. noting in i've heard people talk about but i did hear them talking last week, when there were suggestions that the fed would end the easing sooner than expected tp it was interpreted by some as the fed saying, if will end sooner than expected. market pulled back on that. i think you will see when you get clarity, hopefully clarity from bernanke, reaction to that
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and afterwards, i think less of a violent reaction, if that makes sense. >> yeah. >> it will start to fold in to expectations a little bit as it becomes clearer and then the market will kind of absorb what is expected to be an end of the tightening. >> mary, steve, thank you both very much. let's head to seema mody. >> deciding to voluntarily recall all lots of its drug as a result of hieber sensitivity reactions. now in response to this news, several cell site analyst downgraded shares of affymark, and a similar drug on the market, and i'm told they expect amgen to regain the marketplace for die al says until late 2014
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when roche may take over. a large cap, take a look at google. that continues higher. maintaining position above $800 a share. and zynga on a tear, good news regarding on-line gambling, legalized in nevada. and microsoft is getting the attention of wall street. the firm believing microsoft should split the company into software and device segment. we are watching that as well. >> seema, thank you so much. to chicago where rick santelli is with us, tracking action with the cme. >> we are well above on the ten-year ricky. >> we are. and anyone who thought, why worry about the italian elections, probably not going to move the market, they were not correct. whenever market you're looking at, it reversed rather
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dramatically. we settle at 196. up 2%. now about ready to trade a 190-yield. you see it on the chart. one-month low yield. should we close here? you see the one-month chart. in some european market caught news on the election of italy and you can see whether they did the same thing and they are also hovering about the same time period. one-month low yield. but euro market, currency market is really heating it up. look at interday of the euro at 130 1/2. we zoom up to 131.20 for the day, now at 131.41. the kurpcy as you see on the chart, just resuming the same move it had because that chart didn't even get a chance to peg the strength because it too is looking at closing levels. tyler, back to you. >> rick, thank you very much. let's recap headlines driving today's market action. master card unveilingity virtual
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wallet and that will let customers keep personal details in their phone and avoid check outs by scanning bar code in the store. elan moving higher after royalty farm said it may layoff 6 million. moving higher on sales that the sales of the blackberry 10 are moving along better than expected. so who is ten times more likely than the rest of the population to cite the deficit as nation's biggest issue? the answer, millionaires. what's their solution? well tell you. plus yahoo!'s ceo marisa mayer says working from home is a no-no. should all companies ban the practice? that and whmore when we come ba. [ kitt ] you know what's impressive?
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welcome back to "power lunch." now at lows of the session, dow jones reporting a senior salesman in goldman's security division part of an investigation to communications between bank employees and hedge fund manager has left the company. also, cnbc confirming that goldman will begin a new round of job can cut this week. goldman sachs now down about 2.3%. back to you, guys. >> and josh, at a session low right now is the dow, off about 60-some-odd points after spending much of the early morning on the plus side. only half of nonretired americans participating in the new survey just out this afternoon are saving at work through 401(k) or any other type of retirement. it is this survey shows that confidence among those who are saving is down. last year, only 52% said they felt they were saving enough to
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maintain a desirable standard of living once they do retire. thissier, that number is down below 50%. 49% now, according to the employee benefit research center boomers and gen-x-ers will probably work until they are 65 and avoid depleting equity they built in their homes until other financial sources run out. but bottom line is they all need to save more than they are saving right now. sue? >> makes a lost sense, ty. meantime, wealthy are ten times more likely than the rest of us to site the deficit as the nation's biggest problem. that's according to northwestern university study. robert frank joins us with what the solutions are to fixing the problem and given the fact that they have amassed quite a bit of wealth, people would love to hear the ideas. >> they aren't having retirement savings issues. think members were asked to rank
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the problems and the deficit ranked first. with 88% listing it as most important. followed by unemployment then education. this is much higher than the nation as a whole. jobs and economy tend to be top problems for the top 1%. self interest say the authors, wealthy pay a share of taxes but rely less on government programs. since the wealthy has greater influence on government they may tilt policy toward spending cut. cults that the rest of the population just doesn't really want. but there is another possible explanation here. wealthy may be right. study says the wealthy tend to have better information about the economy and government and have more education. so they may be correct to be so worried about the deficit. but right now, sue, it seems like no one in washington is really getting their way.
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so it is really gridlock, seems to be the number one problem in washington, as opposed to the deficit. >> indeed it is, robert. thanks, ty. a whole new level on wall street. why you should be concerned whether you work there or not. that and more when we return. automatic government cuts. we asked on yahoo!,
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how are you investing money right now? 44% say they find tupt in stocks. 5% in safety and bond. 5% putting dough in commodities and 56% say they are doing nothing. sitting opt side lines. let's see what is coming up now on "street signs." mandy? >> hey there, ty. massive week for housing folks with huge amounts of data coming out. earnings from lowes, home depot. we will dive in. also, jc penney stock is up over 14% just in the past three trading days. what is going on? what is behind it? will it hold? herb will weigh in on that and does yahoo!'s marisa meyer need to get with the times. we will debate telecommuting, the pros and cons and "street signs" cnbc is our twitter handle. all of those things coming up. back to you guys. >> we will be tweeting all afternoon. thank you. cyber hacking has become the most important security issue for u.s. corporations bar none.
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and today wall street is particularly vulnerable. this as cyber spies that are not just looking to bring down a network but are trolling for inside information to make a profit. we are launching our new ongoing series today called hacking america and eamon javers has more from san francisco. eamon? >> good morninging, tyler. we're here in san francisco. there are about p 350 companies involved as well as key government officials. i thought i was cynical and kind of heard of every single possible scam or fraud possibility. but i learned something this week in prepping for the segment i had not heard of before at all and that is cyber insider trading. we talked to expert who say they are seeing attackers hacking into companies to get details they can use in terms of trading in the market and get ahead of markets. one expert we talked to says he
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has seen cases where people are hacking into systems where people are dealing with mergers and acquisition deals. take a listen. >> he says where they have been in negotiation and the people they are negotiating with suddenly knew all of thur numbers and information they were keeping confidential. there are cases where companies and institutions have been looted of all kind of information that will affect future stock performance. >> but what cyber security expert like the ones who are here this week will tell you is the difficulty of attacking insider trading is that they can see information stolen and going out of the servers. but what they can't necessarily see if they are cyber expert is where the trade are happening on wall street. part of the difficulty in policing this area is marrying up cyber security expert and market expert. folks like those at sec can see trading that takes place as a result of it and that is very, very tricky to do. it is something definitely on mind of folks who are here this week, sue.
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>> understandably so, aeamon, thank you. a lack of doctors in florida can could cause a health crisis in the sunshine state. why one company is cracking down on employees that work from home. might this be the end of the tell commute? we will have that in the rundown next. [ male announcer ] at his current pace, bob will retire when he's 153, which would be fine if bob were a vampire. but he's not. ♪ he's an architect with two kids and a mortgage. luckily, he found someone who gave him a fresh perspective on his portfolio. and with some planning and effort, hopefully bob can retire at a more appropriate age. it's not rocket science. it's just common sense. from td ameritrade.
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right now, the dow is trading down 60 points on the trading session. now s&p 500 is at session lows for today's trading session. the nasdaq is doing much better than the other two comparatively and down about five points on the day. all right, time for power rundown. with us today, sharon epperson and jane wells.
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laid, welcome. first up, the state of florida dealing with a very serious shortage of doctors and some predict that under obama care that situation will only get worse. jane, you good first on this one. what do you think? >> sue, i did a story on this for doctors are telling me they will retire earlier because they are working harder and making less with lower reimbursement. i think you will see a change in the model. with a can doctor running a small private practice. doctors that want a life, will go to work for a hospital. medical school with school loans less attractive. >> let's move on to number two, a study finding 25% of all-americans have more credit card debt than savings.
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sharon, this is kind of your beat, if you will, on retirement. does this surprise you? >> no, it is people putting want before needs. even the higher earners, making $75,000 or more, even they have more credit card debt than savings. more than half of the americanes have no plan. if you don't have a plan, how do you save? this is what we are seeing and it runs through every income level. >> right. jane, i wasn't surprised by it, how about you? >> no, i'm surprised the number is that low. >> i agree. >> i think that puts a lot of young people -- where was sharon epperson when i was 30. i could have used you. >> no kidding. we all could have. >> we just need it save more. what is interesting is the people who are making a lot of money that think they can keep spending $400,000 to a foul a jet, that's what some are saying they are using their money on, using a credit card, they don't have any savings.
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>> that's very interesting. all right, marisa mayer pulling the plug on employees working from home. is this a big blow to corporate morale? some of the best ideas come out of those impromptu meetings, water cooler, thanks like that. talking at lunch. you can't do that telecommuting. some of that makes sense to me. snrs. >> well, yeah. it is not very green but i tell you, working for a bureau, i work kind of remotely at this network. sometimes i feel like it is to my detrimental. but look, i'm not moving back. i like my 75 degree weather. if this helps turn yahoo! around, expect them do do it. >> a lot can happen the 90 minutes you are in the car or public transportation and a lot of the discussions around the water cooler is grousing about how they hate being where they are right now. >> all right, thanks, ladies.
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>> appreciate it. we would love you back here, jane. >> yeah, 35 degrees is really nice. a sign of the times, as we wrap it up in the hour of power, next. the american dream is of a better future,
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a confident retirement. those dreams have taken a beating lately. but no way we're going to let them die. ♪ ameriprise advisors can help keep your dreams alive like they helped millions of others. by listening. planning. working one on one. that's what ameriprise financial does. and that's what they can do with you. that's how ameriprise puts more within reach. ♪


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